I am thinking of setting up a bitcoin exchange exclusively for Indians. Still working out the legalities of this. However, there are two options. Need your suggestions:

1. We will sell/buy BTC directly from users. 2. We will act as an exchange like MTGOX and act as an intermediary between the users.

Please point me to the right information for setting up something like this.The idea is to make it easier to buy and sell bitcoins in India. Apparently it is easy to obtain bitcoins here but quite difficult to get rid of them.

What i could advice you is become a escrow you could deposit money from the buyer and when the buyer receives the bitcoins you can release the funds to the sellers and work around with mt gox exchange rate..

I like this idea , i know we have no exchange in India yet , i am from delhi and looking for options to get a basic exchange setup here. may be we all can network together and see if we can do some thing about it, i have been looking at the indian law , the law seems to be regulating currency and payment systems issued by a country or a specific company, payment system regarding credit cards and payment system like the ones created by pay pals. but with bit coin it is decentralized not issued by any particular person or government, i believe that the Indian government would not have any jurisdictional authority, if we look at the sale and purchase of bitcoine as a product rather than a mode of currency , what the person does after the purchase will be his responsibility, Another added bonus is that all bit coin transaction is in the public domaine and if the government cries that they cant know that transaction happens then our response would be to have them pull up the transaction records and connect the dots them self.

Guys tel me what you think of this , and do pm and lets see what we can build.

well if any one wants to start a collaboration to setup a system, which would work for bitcoin lets start to discuss and have a model created, we can in a few month role it out and test it, if that model works then will be good if it has any fault we can modify the model and try to see if other things would be required to make it work. remember the economy and social interaction in india is very different we need to incorporate, the digital with the physical.

I was introduuced to bitcoin by a friend in an MMORPG I play. Was interested in looking at it's status in India. Looks like things are in a nascent stage. I have been exposed to a few projects which could have easily incorporated a bitcoin kind of system in them. If someone is setting up an exchange in India, I would love to be updated about it. If there is some help that is needed let me know. I'm sure as a community, we can set up different aspects, right from the exchange to a market place to kick off this thing in India.

What would this cost in India ? I think the bitcoin community should go together and actually fund entities like this, it will spread bitcoin. When we have a problem working with the existing system, we should simply morph in with them. Banks are rejecting bitcoin business all the time, but if we own the bank, then we can't reject ourselves.

So, if it was established how much it would cost to get a Banking/MSB license, it could be crowdfunded.

What would this cost in India ? I think the bitcoin community should go together and actually fund entities like this, it will spread bitcoin. When we have a problem working with the existing system, we should simply morph in with them. Banks are rejecting bitcoin business all the time, but if we own the bank, then we can't reject ourselves.

So, if it was established how much it would cost to get a Banking/MSB license, it could be crowdfunded.

I might actually have a solution around the licence part. But for that I need certain estimates of volumes. Need not be crowd funded cause the setup cost is low. But it would need volumes to justify it's existence to the authorities.